The fact that income to one economic group constitutes expenditures for another economic group is characteristic of

Question

Quizplus · Accepted Answer

The circular flow of income model shows how money flows between economic agents, such as households and firms, through various transactions. One key element of this model is that income earned by one group (such as households) can also be spent by another group (such as firms), creating a continuous flow of income and expenditures. This is what is being described in the question, making D the correct answer.

The Fact That Income to One Economic Group Constitutes Expenditures